Seadrill orders two high-spec jackups for delivery in 2015 and 2016

Seadrill Limited has entered into contracts for the construction of two high-specification jackups at Dalian Shipbuilding Industry Offshore (DSIC Offshore) in China. The newbuild rigs are scheduled for delivery during Q4 2015 and Q1 2016. The total project price per rig is approximately US $230 million, including project management, capitalized interest, drilling and handling tools, spares and operation preparations, with tail-heavy payment terms.

The two new units will be based on the F&G JU2000E design, with water depth capacity of 400 ft and drilling depth of 30,000 ft. Seadrill now has eight jackups in total under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and one in 2016.

“These two additional orders highlight our commitment to growing our high-specification jackup fleet. The jackup market has traditionally been a shorter-term market; however, we expect longer-term contracts to be executed going forward. In addition to increased terms, we expect to see rising dayrates as attrition accelerates amongst an aging global fleet,” Fredrik Halvorsen, CEO of Seadrill Management, said. “These two new orders will increase Seadrill’s jackup fleet to 29 units and strengthen our position as the largest operator of modern high specification drilling units.”